AFP, Washington :
A closely watched measure of US inflation in January hit its fastest annual pace in more than four years, the Commerce Department reported Wednesday.
The Personal Consumption Expenditures price index, the US Federal Reserve’s preferred measure of inflation, grew at an annual rate of 1.9 percent, a hair’s breadth below the Fed’s two percent target and a pace not matched since October 2012.
The measure has been rising steadily since August and the increase in January boosts expectations the Fed could raise interest rates this month rather than waiting until later in the year.
The central bank held its fire for most of 2016 but Fed Chair Janet Yellen testified last month that rate hikes were coming and possibly soon, and central bankers speaking this week signaled an increase at the March 14-15 policy meeting is possible.
Other data also have pointed to rising inflation. The Labor Department’s consumer price index in January posted the largest 12-month increase in nearly five years, to 2.5 percent. Likewise wholesale inflation, which measures prices from the seller’s perspective, had its biggest monthly gain in more than four years in January, to 1.6 percent year-over-year.
A closely watched measure of US inflation in January hit its fastest annual pace in more than four years, the Commerce Department reported Wednesday.
The Personal Consumption Expenditures price index, the US Federal Reserve’s preferred measure of inflation, grew at an annual rate of 1.9 percent, a hair’s breadth below the Fed’s two percent target and a pace not matched since October 2012.
The measure has been rising steadily since August and the increase in January boosts expectations the Fed could raise interest rates this month rather than waiting until later in the year.
The central bank held its fire for most of 2016 but Fed Chair Janet Yellen testified last month that rate hikes were coming and possibly soon, and central bankers speaking this week signaled an increase at the March 14-15 policy meeting is possible.
Other data also have pointed to rising inflation. The Labor Department’s consumer price index in January posted the largest 12-month increase in nearly five years, to 2.5 percent. Likewise wholesale inflation, which measures prices from the seller’s perspective, had its biggest monthly gain in more than four years in January, to 1.6 percent year-over-year.
